Embed Size (px)
Citation preview
March 30th 2015 Hong Kong
2014 Annual Results Presentation Sinopec Engineering (Group) Co., Ltd.
This document is strictly confidential and has been prepared by SINOPEC Engineering (Group) Co., Ltd. (the “Company”) solely for selected recipients for information purposes only. By accepting this document, you are agreeing to maintain absolute confidentiality regarding the information disclosed in this document. These materials are given to you solely for your own use and information and no part of this document may be copied, reproduced, redistributed or passed on, directly or indirectly, to any other person (whether within or outside your organization/firm) or published, or otherwise disclosed, in whole or in part, in any manner and for any purpose. Any forwarding, distribution or reproduction of this document in whole or in part is unauthorized. The information contained in this document has not been independently verified. No representation, warranty or undertaking, express or implied, is made by the Company or any of its affiliates, advisers or representatives as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions presented or contained herein. The information contained in this document should be considered in the context of the circumstances prevailing at the time, is subject to change without notice and its accuracy is not guaranteed and has not been, and will not be, updated solely to reflect material developments which may occur after the date of the presentation. It is not the Company’s intention to provide, and you may not rely on these materials as providing, a complete or comprehensive analysis of the Company, or its financial or trading position or prospects. Neither of the Company nor any of its affiliates, advisers or representatives shall accept any responsibility or have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. This document contains statements that reflect the Company’s current intent, beliefs and expectations about the future as of the respective dates indicated herein. These forward-looking statements are not guarantees of future performance and are based on a number of assumptions about the Company’s operations and factors beyond the Company’s control and are subject to significant risks and uncertainties, and accordingly, actual results may differ materially from those described in these forward-looking statements. The Company or any of its affiliates, advisers or representatives has no obligation and does not undertake to update these forward-looking statements for any events or developments including the occurrence of unanticipated events that occur subsequent to such dates. This document does not constitute, in whole or in part, an offer for subscription or for sale or invitation to purchase or subscribe for any shares of the Company for sale in the United States, Hong Kong or anywhere else. No part of this document shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. Specifically, these materials do not constitute a “prospectus” within the meaning of the U.S. Securities Act of 1933, as amended, and the regulations enacted thereunder. This document does not contain all relevant information relating to the Company or its securities, particularly with respect to the risks and special considerations involved with an investment in the securities of the Company. No shares of the Company may be sold in the United States or to U.S. persons without registration with the United States Securities and Exchange Commission except pursuant to an exemption from, or in a transaction not subject to, such registration. The Company has not registered and does not intend to register any shares or conduct a public offering in the United States. In Hong Kong, no shares of the Company may be offered to the public unless a prospectus in connection with the offering for sale or subscription of such shares has been formally approved by The Stock Exchange of Hong Kong Limited and duly registered by the Registrar of Companies of Hong Kong under the relevant provision of the Companies （Winding Up and Miscellaneous Provisions）Ordinance (Chapter 32 of the Laws of Hong Kong). Otherwise, without due registration, a prospectus must not be distributed, issued or circulated in Hong Kong. The distribution of this document in other jurisdictions may be restricted by law, and persons into whose possession this document comes should inform themselves of, and observe, any such restrictions.
Disclaimer
Company Overview
Operation Overview
Financial Performance
2
Contents
Company Overview
Improve core competitiveness
Facilitate better understanding of
client needs
Leading Engineering and R&D Capability with Strong Technological Strength
Generate stable demand
Provide high-quality equipment
Provide stable, high-quality construction
services
Generate stable demand
EPC Contracting
Equipment Manufacturing
Construction
Our licensing business further facilitates our engineering, consulting and EPC contracting business.
Clean Energy Oil Refining Inorganic Chemicals
The Environment, Energy-Saving
Project and Others
New Coal Chemicals
3
Leading Oil Refining and Chemical Engineering Company in the PRC
Engi
neer
ing,
Con
sulti
ng a
nd
Lice
nsin
g
Petrochemical
4
Our Vision, Development Strategy and Core Competitiveness
Vision：Building a World-Class Engineering Company
Development Strategies
Energy and Chemical-Oriented
Based on oil and gas , with emphasis on oil refining, petrochemical, natural gas and new coal chemical businesses.
Through joint ventures and joint development, M&A and reorganizational schemes, develop our biological, non-conventional energy, environmental protection and green energy business etc.
Innovation-Driven
Building technology-centric innovation system.
Lead market development，enhance competitivene-ss and add value through innovation.
Globalization-Targeted
Based domestically, expand overseas, mutual development and grow concurrently.
Leading operation management, project management, information management system,ensuring the orderly implementation of overseas projects.
Value-Focused
Customer-centric, and provide high value services, to achieve a win-win situation.
To ensure shareholder value, customer value, social value and the value of staff, to achieve the greatest value for all.
Core Competitiveness：Providing One-Stop Integrated Solutions
“Belt and Road”（一带一路） Strategy Bring Overseas Opportunities
5
Large demand on refined oil and chemical products along the “Belt and Road”.
Most of SEG’s overseas projects are located in the “Belt and Road ” zones.
The development of SEG is in consistent with “Belt and Road ”strategy.
“The Silk Road Economic Belt”
“The 21th Century Maritime Silk Road”
“SEG Overseas Project”
2,000
2,600
2013 2016E 2014
2,330
The GDP growth of the PRC was 7.4%, among the best in the world's major economies.
In 2014, the Chinese domestic refined oil output was 285 million tonnes (an increase of 4.4%). The estimated amount of refined oil apparent consumption was 269 million tonnes , representing an increase of 2.0%.
In 2014, the cumulative Chinese domestic ethylene output was 17.04 million tonnes, an increase of 5.0% .The amount of ethylene apparent consumption was 18.54 million tonnes, representing an increase of 3.4%.
In 2014, the oil and chemical industry fixed asset investment (“FAI”) totaled around RMB 2.33 trillion ,an increase of 10.7%.
The GDP Growth of the PRC is Among the Best in the World's Major Economies.
FAIs for the PRC Oil Refining and Chemical Engineering Industry
China’s Key Economic Status and Industry Indicators in 2014
Increase demand for refined oil and chemical Products
Speed up the upgrade and elimination of oil refining
obsolete capacity
Improve the competitiveness of the petrochemical industry
Broaden prospects of
environment and energy
0.00%
6.00%
12.00%
2010 2011 2012 2013 2014 2015E 2016E 0
30,000
60,000
90,000
Source: NBS, NDRC, MIIT, CPCIF
China’s gross GDP China’s GDP Growth Global GDP Growth
FAIs for China oil refining and chemical engineering industry as a percentage of GDP
6
Oil Price Slump Cast a Shadow Over the Industry Temporarily, yet Long-Term Prospects are Still Promising.
847
1,095
2010 2011 2012
1,475
Unit: RMB billion Unit: RMB billion
Operation Overview
2013 2014
36,541 42,507
7,031 6,839
Revenue (RMB mn)
7
Year on Year Revenue by Domestic/Overseas (RMB mn)
16.1% (Overseas) 83.9% (PRC)
13.9% (Overseas) 86.1% (PRC)
Optimize the Allocation of Resources, Adjust the Internal Structure, Steady Income Growth
The project financing is already in place. Safety, quality and progress are under control.
U.S. JUMBO PTA and PET Project
The complex has been handed over and put into operation.
All 31 units are put into operation .
Phase I is put into operation, more than 90% of phase II’s design work has been completed.
About 90% of the project has been completed.
Aromatics Project of Kazakhstan Atyrau Refinery
2013 2014
43,572 49,346
Yuanba Natural Gas Purification Project
Sinochem Quanzhou Project
Shandong LNG Storage Tank Zone Project
The complex has been handed over and put into operation.
The complex has been handed over and put into operation.
Detailed engineering and construction of the project was already in full swing.
Yulin Coal Chemical Project
Shaanxi Pucheng DMTO Project
Zhong Tian He Chuang Coal Chemical Project
18,752 26,640
27,275 23,600
39,159 47,262
7,381
6,420
By Business Segment (RMB mn) By Industry Sector (RMB mn)
8
Backlog was Maintained in the Hundred Billions
2014/12/31
6,050 6,515
74,039 82,080
12,217
15,191 262
136
79.0%
14.6%
6.3%
0.1%
103,922 103,922
2014/12/31
45.5%
6.2%
22.7%
25.6%
2013/12/31
80.0%
13.2%
6.5%
0.3%
92,568 92,568
2013/12/31
42.3%
8.0%
29.5%
20.3%
Engineering, consulting and licensing 、 EPC contracting Construction Equipment manufacturing
Oil refining Petrochemicals New coal chemicals Other industries
6,967 17,894
23,648 12,336
34,828
23,041
5,143
7,429
5,411 4,110
51,235
38,173
13,439
18,299
504
118
By Business Segment (RMB mn) By Industry Sector (RMB mn)
60,700
2014
62.9%
30.1%
6.8%
0.2%
9
New Contracts Practically Achieved the Target for 2014
60,700
2014
29.5%
20.3%
38.0%
12.2%
9.9%
49.3%
7.3%
70,589 70,589
2013 2013
72.6%
19.0%
7.7%
0.7%
33.5%
Engineering, consulting and licensing 、 EPC contracting Construction Equipment manufacturing
Oil refining Petrochemicals New coal chemicals Other industries
Market Development Advanced Amid Difficulties
10
Shandong LNG Terminal Station
Project
Shandong
Fujian EO/EG Project
Fujian
Ningxia
Shenhua Ningxia Coal -to-Liquids
Project
Qinghai Damei DMTO Project
Qinghai
Saudi Sulfuric Acid and Power Plant Project
Saudi Jazan Refinery Construction Project
Saudi Arabia
ZhongAn Coal Chemical Project
Anhui
Malaysia RAPID Oil Refining
Project
Malaysia
Nanjing Jinling Huntsman Propylene
Oxide Project
Jiangsu
Oil Refining
Petrochemical
New Coal Chemical
Others
Coal chemical, petrochemical, natural gas and other major projects were making progress; “0.2 MTPA syngas-to-glycol industrial demonstration plant packaged technology”,“cold-wall typed single injector pulverized coal
pressurized gasification (SE) packaged technology” and SE oriental furnace industrial demonstration unit project were in good operating and with sufficient technical and marketing preparation;
Renewable wet flue gas desulfurization technology, has completed unit construction and has been put into operation successfully; 50,000 TPA fluidized-bed hydrogenation unit is being launched.
Leading Technologies and Breakthroughs Were Made Based on Major Project and Maintained an Advanced Level
The world’s first set of DMTO integrated unit adopting olefin separation technology of intellectual property rights and coal-to-olefin project DMTO-II unit have been put into operation successfully;
3,000 Nm3/h coal to natural gas (SNG) pilot unit was put into operation in Shaanxi Datang at the end of June and completed calibration. The semi-industrial unit is under engineering;
Fluid MTG technology which researched and developed in cooperation with ExxonMobil Research and Engineering Company, has completed the cold mold fluidization test as well as construction of the thermal state pilot unit.
The MTA unit –key element in coal to aromatics industrialization demonstration project with Tsinghua University is in the basic design stage.
Building Full Technical Chain in New Coal Chemical Industry
At the National Science and Technology Awards Conference 2014, SEG won four prizes; The “DMTO” technology (methanol to Olefin ) won First Prize of National Technical Invention; The “Design, Manufacturing and Maintenance of Important Pressure Vessel under Extreme Conditions” engaged by the
Group was awarded the First Prize of the state for scientific and technological progress; The “R&D and Application of New Technology on Emission-Reduction of Fine Particulate Pollutant Process in Major
Chemical Engineering Equipment” engaged by the Group obtained the second prize for National Technical Invention; The “Technical Innovation and Industrial Application of Full High Efficiency Progressing of Peracid Heavy Crude Oil”
engaged by the Group was awarded Second prize of the State for Scientific and Technological Progress.
Achieving Numerous Fruitful Results in Technology Innovation
11
Leading Technologies and Breakthroughs Achieved in Technology Innovation
In 2014, the Group has opened nearly 150 new technical R&D topics, involving technological development of new energy utilization field, technical research of the environmental protection field, and safety and environmental protection construction technology.
Expanding Technical Research and Development in New Domains
Attach Great Importance to Our Environmental Protection and Energy Saving Business
●Environmental protection and green low-carbon industries have been upgraded to the national strategic level, environmental protection and energy saving industries have become national pillars. ● Energy enterprises aim to increase the potential investment which has brought SEG enormous business opportunities.
We will set up an energy-saving and environmental protection engineering technology center, to manage and comprehensively improve our technology in this domain.
We will develop new business models such as contract environmental protection management contract energy management.
We will seek future opportunities for external cooperation.
Flue gas De-Sox and De-Nox
Wastewater Treatment Sludge Drying Process
Polluted Soil Clean Up
Sulfur Recovery Garbage Disposal CO2 Emission Reduction and
Utilization
Energy Saving and Heat Recovery
12
Vision：Building a World-Class Engineering
Company
13
Business Prospects
Continuously Deepen Reform, Resource Optimisation and Professional Restructuring.
Reinforce Control of Project Process, Take Various Measures Simultaneously, and Reduce Cost While Increasing Efficiency.
Steadily Exploit the Overseas Market and Solidly Promote International Operation.
Strive to Elevate Scientific and Technology Innovation and Maintain Technological Leadership Advantages.
Vigorously Exploit the Environmental Protection and Energy Saving Fields, and Create New Business Growth Points.
Establish Modern Human Resource Management System and Management Incentive Mechanism.
Comprehensively Advance Construction of the Integrated Management Information System.
14
Financial Performance
Financial Overview
December 31st 2014
26,385
20,977
20,980
December 31st 2013
52,085 29,212 22,869
22,873
(RMB million)
Equity Attributable to Shareholders of the Company
Total Assets
Total Liabilities
Net Assets
47,365
Operational Performance Indicators
Assets and Liabilities
Other Key Financial Indicators
14
Gross Profit Margin
ROA1
ROE2
Net Profit Margin
2014 2013
ROIC3
14.7%
8.7%
17.4%
8.4%
17.4%
12.7 %
7.0 %
15.3 %
7.1 %
15.3 %
(RMB million)
Backlog 103,922 December 31st 2014 December 31st 2013
2014 49,346 6,291 4,039
3,490
2013 Change Rate 13.3 % (1.8 %) (8.5%) (4.6%)
(RMB million) Change Rate 12.3 %
Operational Profit Net Profit
Gross Profit Revenue 43,572
6,406 4,413 3,657
92,568
Notes: 1. ROA=Net Profit/((Opening Balance of Total Asset + Closing Balance of Total Asser))/2 2. ROE=Net Profit/Closing Balance of Total Equity 3. ROIC=EBIT x（1-Tax rate）/ (Total Interest Bearing Debt- Credit Loans +Total Equity at the end of the year)
2012 2013 2014
12,556 12,299 10,007
15,036 16,702 16,011
4,928
8,855 14,938 6,006
5,715
8,390
By Industry Sector (RMB mn)
15
Revenues
30.3%
32.4%
22.3%
17.0%
By Business Segment (RMB mn)
38,526 43,572 49,346 38,526 43,572 49,346
Engineering, consulting and licensing 、 EPC contracting Construction Equipment manufacturing
Oil refining Petrochemicals New coal chemicals Other industries
Note: Revenues are after inter-segment elimination;
2012 2013 2014
4,122 4,354 3,645
20,082 23,506
30,132
16,297 15,215
15,325 625 497
244
7.4%
61.1%
31.1%
0.5%
2012 2013 2014
3,317 3,657 3,490
2012 2013 2014
1,858 2,017 1,597
2,857 3,312
3,590
834
1,079 1,072 -20
-2 31
Gross Profit (RMB mn) and Gross Profit Margin Net Profit (RMB mn) and Net Profit Margin
、
Gross profit margin
Net profit margin
16
8.6% 8.4%
Gross Profit and Gross Profit Margin, Net Profit and Net Profit Margin
57.1%
25.4%
17.0% 0.5%
5,528 6,406 6,291
7.1%
3,317 3,657 3,490
Engineering, consulting and licensing 、 EPC contracting Construction Equipment manufacturing
14.7% 14.3% 12.7%
Total Assets (RMB mn) Equity Attributable to Shareholders (RMB mn)
17
Total Assets
2012/12/31 2013/12/31 2014/12/31
37,130
47,365 52,085
2012/12/31 2013/12/31 2014/12/31
7,078
20,977 22,869
Current Ratio
Asset-Liability Ratio Operating Current Liabilities/Total Liabilities
Note: operating current liability includes notes and trade payables, other payables and amount due to customers for contract work.
Quick Ratio
18
Assets Structure
2012/12/31 2013/12/31 2014/12/31
80.9% 55.7% 56.1%
2012/12/31 2013/12/31 2014/12/31
87.9% 88.9% 89.4%
2012/12/31 2013/12/31 2014/12/31
1.1 1.7 1.7
2012/12/31 2013/12/31 2014/12/31
1.1 1.6 1.6
Net Cash Flow Generated for Operating Activities
Cash and Cash Equivalent(RMB mn)
19
Cash flow
2012/12/31 2013/12/31 2014/12/31
1,556
-86
333
2012/12/31 2013/12/31 2014/12/31
4,822 5,514
9,182
Turnover Days of Notes and Trade Receivables Turnover Days of Notes and Trade Payables
Operating Cycle Turnover Days of Inventories
Note: operating cycle= Turnover days of notes and trade receivables + Turnover days of inventories
Unit: Day Unit: Day
Unit: Day Unit: Day
20
Capital Turnover
2012/12/31 2013/12/31 2014/12/31
52 55 67
2012/12/31 2013/12/31 2014/12/31
83 91 95
2012/12/31 2013/12/31 2014/12/31
59 65 79
2012/12/31 2013/12/31 2014/12/31
7 10
12
创建世界一流工程公司 Build a World-Class Engineering Company
打造更美好的世界 Engineering a better world
